DMC Global (BOOM) The 15th Annual East Coast IDEAS Conference summary

Business overview and financials

• Operates three asset-light businesses with differentiated market positions and $635M revenue, $50M EBITDA.

• Maintains a clean balance sheet with $60M net debt, $225M debt capacity, and 1.35x leverage ratio.

• Arcadia (building products) is expected to drive most future growth due to its large addressable market.

• Arcadia's revenue is 75% commercial exteriors, 15% high-end residential, and 10% interiors, with a hub-and-satellite distribution model.

• Arcadia's commercial exteriors business is concentrated in the West and Southwest U.S.

Segment strategies and operational focus

• Arcadia aims for geographic expansion and potential acquisitions, especially after acquiring the remaining 40% stake.

• DynaEnergetics focuses on technology-driven perforating guns for oil and gas, with recent automation and product redesign to improve margins.

• NobelClad specializes in explosion clad welding for diverse end markets, including oil, gas, marine, and power generation.

• All segments are investing in R&D and new product development to maintain competitiveness.

• Management is focused on EBITDA growth and free cash flow, with incentives aligned across all levels.

Recent performance, challenges, and outlook

• Q3 last year was a down quarter, but improvements were seen in Q4 and Q1, with a back-to-basics operational focus.

• Arcadia's prior underperformance was attributed to self-inflicted capacity and customer trust issues, now addressed by rehiring a former president.

• DynaEnergetics faced margin pressure from customer consolidation and lower ASPs, countered by automation and value engineering.

• NobelClad is exploring ways to compete more effectively in Asia, especially against Chinese competitors.

• Significant LA wildfire rebuild demand is expected to impact Arcadia's residential business in 2026.